Analysts rate Shaw Communications Inc (SJR-B:CA:TSX) with a Strong Buy, $40.50 Target

STA Research
by: STA Research

Analysts rate Shaw Communications Inc stock with a consensus Strong Buy rating and a 12-month average target price of $40.50 per share.

CIBC Capital Markets maintains Shaw Communications Inc with an outperform rating and keeps the company’s target price at $40.50.

Morningstar initiates Shaw Communications Inc with a Hold rating and sets the company’s target price at $38.

Based on the Shaw Communications Inc stock forecasts from 3 analysts, the average analyst target price for Shaw Communications Inc is CAD 40.50 over the next 12 months. Shaw Communications Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Shaw Communications Inc is Slightly Bullish , which is based on 9 positive signals and 6 negative signals. At the last closing, Shaw Communications Inc’s stock price was CAD 38.94Shaw Communications Inc’s stock price has changed by -0.11% over the past week, +0.40% over the past month and +14.83% over the last year.

What we like:

Superior total returns

The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Low debt

The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

What we don’t like:

Low market capitalization

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector.

 

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